NOV Inc. (NOV)

Days of sales outstanding (DSO)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		4.51	4.19	4.24	4.31	4.16	4.12	3.88	3.97	4.18	4.17	4.27	4.31	4.78	5.10	5.18	4.48	4.57	4.78	4.37	4.80
DSO	days	81.01	87.02	86.09	84.73	87.71	88.67	94.15	91.83	87.29	87.59	85.40	84.63	76.36	71.61	70.41	81.43	79.85	76.39	83.50	76.12

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 4.51
= 81.01

The days of sales outstanding (DSO) metric for NOV Inc has shown some fluctuation over the past eight quarters. In Q4 2023, the DSO decreased to 81.01 days compared to Q3 2023 where it was 87.02 days. This suggests that the company was able to collect its accounts receivable more efficiently in the most recent quarter.

Although there has been some variability in DSO over the quarters, it is worth noting that the DSO has generally remained in the mid to high 80s range, indicating that NOV Inc typically takes around 80-90 days to collect its accounts receivable.

It is important for NOV Inc to closely monitor its DSO trend over time to ensure efficient management of its accounts receivable. A decreasing trend in DSO could indicate improvements in the company's credit policies or collection processes, contributing to better cash flow management. Conversely, an increasing trend in DSO may raise concerns about potential liquidity issues or credit risks with customers.